Meals On Wheels Case Study

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Inventory Management
Meals on Wheels follows a food service system which involves: purchasing food ingredients to the production facility, preparing the recipes, making the recipes, storing of chilled and frozen products, and then sending the meals out to be delivered. This means that the planning process is one of the most crucial steps when obtaining materials. The production planning team is responsible for estimating demands, as they are constantly viewing how many clients need what food, during which days (Forster, 2016). The production team is in constant communication with the chefs and dietitians to determine the exact amount of materials coming in (Forster, 2016). Usually, the production team is responsible for orders of 2 sets of …show more content…

Dry materials are items such as ketchup, sugar, and salt. The team is in constant communication with the accounting division to determine the cost and price limit, before items are delivered (Forster, 2016). Meals on Wheels operates on a Just-In-Time ordering system (Forster, 2016). This means that they order certain raw materials and put certain meals together after orders have been received. For example, Karen and her production team will order materials based on demand forecasted techniques (Forster, 2016). These demand forecasted techniques are usually based on historical data and are recorded in the company database as a reference for future needs. These intrinsic forecasting techniques look at the notion that “what will happen in the past will happen in the future”. An example of this is using a moving average. This looks at the last few months or years, and averages out the inventory required for those periods. Meals on Wheels does experience more volume in the winter, so they keep more inventory on hands during these peak seasons (Forster, 2016). This is due to more clients staying at home, and not wanting to go out into the cold. Whereas the summer, individuals are more adventurous and can often find themselves …show more content…

They update inventory records after frequent purchases, and periodic inventory counts of certain items are done, to determine when to reorder. For example, Meals on Wheels has an order system that automatically determines how much stock should be on hand, so the production team has a recommendation on when to order (Forster, 2016). Meals on wheels also has multiple facilities, so this allows for them to allocate resources to many different facilities to minimize risk (Forster, 2016). For example, if something were to happen to one facility, the other facility would be able to step in and handle the customer

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